Pakistani bank focuses on customers<\/p>\n
By Ibrahim Khan<\/p>\n
KARACHI, Pakistan (Reuter): Pakistan's Moslem Commercial Bank
\n(MCB), revitalized since privatization in 1991, is planning new
\nservices to meet customer demand.<\/p>\n
\"The trend is towards universal banking, endeavoring to create
\na structure under which the customer will have far more choices
\nand will be transformed from king to dictator,\" MCB president
\nHussain Lawai told Reuters in an interview.<\/p>\n
\"In the process, bank profits will get leaner in this intense
\ncompetitive environment,\" he said.<\/p>\n
MCB has just declared a healthy pre-tax profit of 475.20
\nmillion rupees for the first half to June, 75 percent up on the
\n272.64 million rupees it made in the same period a year ago.<\/p>\n
\"The results are extremely encouraging,\" said dealer Asif Jan
\nof Kausar Abbas Bhayani, a Karachi-based securities house.<\/p>\n
He said Lawai had played a major role in boosting the bank's
\nprofits by chasing and recovering bad debts.<\/p>\n
Lawai himself attributed MCB's profitability to higher
\ninterest rates, aggressive switching from low-yielding loans and
\ninvestments to higher-yielding ones, low deposit rates and
\ncustomers who were not too sensitive to interest rates.<\/p>\n
The MCB result, while exceeding brokers' expectations, did not
\nlift its scrip much on the Karachi Stock Exchange, which has been
\ndepressed by uncertainty about Pakistan's economic and political
\noutlook.<\/p>\n
MCB's 10-rupee stock closed just 0.25 up at 32.75 last
\nWednesday, the day the result was announced.<\/p>\n
The bank achieved a pre-tax profit of 928 million rupees in
\ncalendar 1995, 31 percent up on 707 million in 1994 and more than
\nfour times the 213 million it had recorded in 1991.<\/p>\n
Net assets rose to 119.7 billion rupees in 1995, from 98.6
\nbillion in 1994 and 45.2 billion in 1991. Deposits swelled to
\n99.6 billion from 81.5 billion in 1994 and 35 billion in 1991.<\/p>\n
Earnings per share rose to 2.44 rupees in 1995 from 2.26 in
\n1994. Book value per share rose to 22.86 from 21.98 in 1994.<\/p>\n
Dealer Ali Raza Mooney said MCB, which paid 20 percent bonus
\nstocks and 15 percent rights issue for 1995, against 18 percent
\nbonus stocks for 1994, was a good scrip with growth potential.<\/p>\n
Lawai now has his sights set on pulling MCB into the next
\ncentury by adopting fast-changing technologies to deal with
\nglobalization, deregulation and privatization.<\/p>\n
\"The time has come to look forward to the 21st century,
\ndevelop a vision of the future and adopt strategies for a
\nchange,\" he said. \"We are already witnessing the change from
\ntraditional banking to financial service industry, in which each
\nfinancial institution wants to get into the business of others.\"<\/p>\n
MCB has plans to introduce on-line banking and to install
\nautomated teller machines at 200 branches, Lawai said. It will
\nalso promote longer-term savings schemes and develop low-cost
\ncredit products for small borrowers.<\/p>\n
\"Having realized customer expectations for the next century,
\nMCB is going all out to meet them,\" Lawai said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pakistani-bank-focuses-on-customers-1447893297",
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